Question
Fir Company issued 9% bonds on January 1, 2020 when the market yield was 10%, as is shown in the journal entry below. Interest is
Fir Company issued 9% bonds on January 1, 2020 when the market yield was 10%, as is shown in the journal entry below. Interest is paid semiannually on June 30 and December 31.
| Date | Account | Debit | Credit | ||
| Jan. 1, 2020 | Cash | 2,958,800 | |||
| Discount on Bonds Payable | 241,200 | ||||
| Bonds Payable | 3,200,000 | ||||
What is the carrying amount of the bond on June 30, 2020?
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Intermediate Accounting IFRS
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
3rd edition
1119372933, 978-1119372936
